Union Pacific-Norfolk Southern Deal Spread Stands at $63 Friday

The spread in Union Pacific's $72 billion acquisition of Norfolk Southern widened to $63 from $60, reportedly due to remarks by UNP's CEO earlier this year. The companies involved are Union Pacific (UNP) and Norfolk Southern (NSC).

Union Pacific and Norfolk Southern have completed their merger, forming a new railroad network. Union Pacific highlights benefits, but local residents express concerns about emergency response impacts, according to Bonsack resident Bekah Lynx.

Critics of Union Pacific's proposed acquisition of Norfolk Southern Railway, including railroad shippers and supply chain managers, have backed Canadian Pacific Kansas City's request to end the US Surface Transportation Board's review. They allege that Union Pacific's CEO, Jim Vena, made statements that corrupted the administrative record and harmed captive shippers, according to a filing.

The Surface Transportation Board (STB) ordered Union Pacific to release a recording of CEO Jim Vena's speech, which included a remark about raising rates for merger opponents. The STB has concerns this may have silenced shippers. Union Pacific complied, and the STB invited parties to report any retaliation. The merger review process is ongoing, with a decision expected by May 2027. Rival CPKC argues Vena's remark undermined the proceeding's integrity.

Union Pacific (UP) CEO Jim Vena said he would raise rates on shippers opposing its merger with Norfolk Southern, according to a video released by UP. The Surface Transportation Board ordered UP to make the video public after CPKC and the Joint Shipper Associations raised concerns. UP denies retaliating against customers. The merger is still under review.

The Surface Transportation Board denied Union Pacific's appeal to withhold a recording of CEO Jim Vena's speech, citing potential chilling effects on merger review. UP argued release would cause harm, but the board found the appeal late and meritless. UP must release the recording by Thursday. Rival CPKC seeks to dismiss the merger, citing Vena's remarks. UP and Norfolk Southern must respond by Nov. 19.